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2013 (9) TMI 485 - AT - Income TaxRejection of comparables - Adjustment in arm's length price - Held that:- main reason for excluding Wipro BPO is on the basis of higher turnover claimed by that BPO when compared to the assessee in that case - But assessee's turnover is not small - The company which was once selected as comparable cannot be rejected in other similar circumstances - Decided in favour of assessee. Deduction under S.10A - Foreign exchange gain - Held that:- since foreign exchange gain is on account of fluctuations of the foreign exchange received for the services rendered by the assessee, this has to be treated as business income and it has to be considered as profits of the business for computing the deduction under S.10A of the Act - Decided in favour of assessee. Data link charges considered as attributable to delivery of computer software outside India should be excluded from export turnover as well as total turnover, while computing the deduction under S.10A. Further, out of the data link charges spent by the assessee, how much is for intra and inter office services and how much is for delivery of services has not been examined by the Assessing Officer - In case any amounts are to be excluded as attributable to delivery of services outside India, the same should be excluded both from export and total turnover, while computing deduction under S.10A. Non-consideration of profits of overseas branch of the assessee as arising from export of ITES. - For allowing the deduction under S.10A/10B, other conditions are required to be satisfied, including the questions (a) whether the branch is rendering any BPO services; (b) whether the functions are similar; and (c) whether the incomes can be considered as income of STPI eligible for deduction. - matter remanded back for reconsideration.
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